Fireside Ventures invests $1 million in Mamaearth

“With declining fertility rate and increase in disposable income, the spend per child is growing disproportionately in India. In last three years, CAGR for baby-and-mom-care market was in excess of 20%,” said Kanwaljit Singh of Fireside Ventures.

AHMEDABAD: Kanwaljit Singh’s Fireside Ventures, along with some other investors, invested $1 million (Rs 6.4 crore) in Honasa Consumer’s Mamaearth baby and mother care brand. The startup would spend the money for offline expansion, customer acquisition and executing a range of 15 innovative baby products which is in the pipeline for next two quarters.

Mamaearth offers toxin-free products that the company claims to help reduce parenting stress. It plans to launch products related to lactation, stress relief and postpartum weight loss under traditional recipes for new moms.

The year-old company, started by Varun Alagh and his wife, claims to have already garnered 30,000 customers in more than 100 cities in India. “Young mothers are already our target group, but in longer term we will look at extending the lifetime value of this relationship by entering into the kids segment of 5-10 years,” Alagh said.

Alagh estimates the market for toxin-free or natural mother and baby wellness products to be worth around $10 billon globally and $250 million in India in the next five years. Based on early sales and response to Mamaearth’s offerings, he is expecting significant demand for its products going ahead.

“With declining fertility rate and increase in disposable income, the spend per child is growing disproportionately in India. In last three years, CAGR for baby-and-mom-care market was in excess of 20%,” said Kanwaljit Singh of Fireside Ventures.

Fireside Ventures invest primarily in non-tech consumer or FMCG start-ups or business. Singh is a former managing director of Helion Venture Partners and had worked for more than a decade at FMCG giant Hindustan Unilever.

According to Singh, there are brands such as The Honest Company and Seventh Generation which are valued at more than a billion dollars while specialising in toxin-free and natural products. Indians, who are increasingly becoming conscious about the effects of chemicals-based products, are moving towards healthier options and are willing to pay more for such products, he added.

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